Income Tax Range:

Low: 1% (on the first $1,000 of taxable net income for married couples filing jointly; on the first $750 for individual filers; and on the first $500 for married couples filing separately).

High: 6% (on taxable income over $10,000 for married couples filing jointly; on taxable income over $7,000 for individual filers; and on taxable income over $5,000 for married couples filing separately). The high rate will fall to 5.75% in 2019 and to 5.5% in 2020 if the governor and legislature reconfirm the reduction in that year’s legislative session.

Social Security: Benefits are not taxed.

IRAs, 401(k)s, DC plans, private pensions, public pensions: The retirement income exclusion is $35,000 for residents aged 62 to 64. For residents 65 or older, the exclusion is $65,000. Railroad Retirement income is exempt.

Median Property Taxes: $1,413 on median home value of $152,400.

For homeowners 62 and older who earn $10,000 or less, up to $10,000 of their property's assessed value is exempt from school taxes.

People 62 or older whose family income doesn’t exceed $30,000 may qualify for an exemption from state and county property taxes equal to the amount by which the assessed value of the home exceeds the assessed value for the preceding tax year (in effect, freezing their assessed value).

For those 65 and older who earn $10,000 or less, the homestead exemption is doubled to $4,000. Many counties offer homestead exemptions that may be more beneficial to the taxpayer than the exemptions offered by the state. 

Inheritance and Estate Taxes: None

Income Tax Range: A flat income tax rate of 5%. Localities add on an average 2.08%.

Social Security: Benefits are not taxed.

Exemptions for Other Retirement Income: Kentucky offers a retirement income exclusion of up to $31,110, which includes distributions from IRAs and 401(k)s as well as private pensions and annuities. Railroad Retirement benefits are exempt. There is an additional exclusion for qualified military, civil-service, and state and local government pensions.

IRAs, 401(k)s, DC plans, private pensions, public pensions: Qualifies for retirement-income exclusion of up to $31,110, which includes distributions from IRAs and 401(k)s as well as private pensions and annuities. Railroad Retirement benefits are exempt. There is an additional exclusion for qualified military, civil-service, and state and local government pensions. 

Median Property Taxes: $1,078 on median home value of $126,100.

For homeowners 65 and older, $37,600 of the assessed value of residential property is exempt from state taxes for 2018.

Inheritance and Estate Taxes: All Class A beneficiaries (spouse, parent, child, grandchild, brother and sister) are exempt from the inheritance tax. Other beneficiaries are subject to inheritance tax rates ranging from 4% to 16%.

Income Tax Range: No state income tax. But there’s a 5% tax on dividends and interest in excess of $2,400 for individuals ($4,800 for joint filers).

Social Security: Benefits are not taxed.

Exemptions for Other Retirement Income: Retirement income is not taxed. A $1,200 exemption is available for residents 65 or older for taxable dividends and interest.

IRAs, 401(k)s, DC plans, private pensions, public pensions: Retirement income is not taxed.

Median Property Taxes: $5,241 on median home value of $239,700.

An elderly exemption for property taxes is available to those aged 65 and older who have lived in the state for at least five years. Towns and cities set additional eligibility rules, but the minimum exemption is $5,000 off the assessed home value. Property taxes can be deferred but accrue interest at the rate of 5% per year. The deferred property tax may not exceed 85% of the equity value of the residence. The deferral is available (if granted by the assessing officials) to any resident property owner who is at least 65 years old.

There is also a Low and Moderate Income Homeowner’s Property Tax Relief program.

Inheritance and Estate Taxes: None

Income Tax Range: No state income tax.

Social Security: Benefits are not taxed.

IRAs, 401(k)s, DC plans, private pensions, public pensions: Retirement income is not taxed. 

Median Property Taxes: $1,478 on median home value of $191,600.

Inheritance and Estate Taxes: None

Income Tax Range: Pennsylvania has a flat rate of 3.07 percent. However, municipalities levy an average 2.95 percent on income too.

Social Security: Benefits are not taxed.

Exemptions for Other Retirement Income: Retirement income is not taxed after aged 59½ if the person has reached retirement, based on years of service or age.

IRAs, 401(k)s, DC plans, private pensions, public pensions: Not taxed.

Median Property Taxes: $2,603 on median home value of $167,700.

Homeowners and renters aged 65 or older and widows or widowers 50 or older who live on limited incomes are eligible for rebates of paid property tax or rent.

Inheritance and Estate Taxes: The inheritance tax is calculated as a percentage of the value of the estate transferred to beneficiaries. The amount is determined based on the relationship of the heir to the decedent and the decedent's date of death. The tax rate is 4.5% for transfers to direct descendants (lineal heirs), 12% for transfers to siblings and 15% for transfers to other heirs (except charitable organizations, exempt institutions and government entities). Property a husband and wife own jointly is exempt from the tax, and so is property inherited from a spouse or from a child 21 or younger by a parent. If the inheritance tax is paid within three months of the decedent's death, a 5% discount may apply.

Income Tax Range: No state income tax.

Social Security: Benefits are not taxed.

IRAs, 401(k)s, DC plans, private pensions, public pensions: Retirement income is not taxed.

Median Property Taxes: $1,702 on median home value of $166,800

Florida residents aged 65 and older who meet certain income limits can receive an extra homestead exemption of up to $50,000 from some city and county governments and/or an exemption equal to the assessed value of the property, as long as the real estate has a fair market value of less than $250,000, the homeowner has maintained permanent residence at the location for at least 25 years, and household income does not exceed $29,454 in 2018. Any widow or widower who is a Florida resident may claim an additional $500 exemption.

Inheritance and Estate Taxes: None

Income Tax Range:

Low: 3% (on taxable income of $1,000 or more)

High: 5% (on more than $10,000 of taxable income)

Income tax rates are being gradually reduced. By 2022, the first $5,000 of taxable income will be exempt.

Social Security: Benefits are not taxed.

IRAs, 401(k)s, DC plans, private pensions, public pensions: Exempt from state income tax.

Median Property Taxes: $841 on median home value of $105,700.

The state offers a homestead exemption of up to $300 for all eligible taxpayers. For homeowners aged 65 and older or totally disabled, there is an exemption on the first $75,000 of value.

Inheritance and Estate Taxes: None

Income Tax Range: No state income tax.

Social Security: Benefits are not taxed.

IRAs, 401(k)s, DC plans, private pensions, public pensions: Retirement income is not taxed.

Median Property Taxes: $1,828 on median home value of $138,40.

A tax freeze and/or municipal property tax reduction is available for seniors aged 65 and older.

South Dakota also has a property tax homestead exemption for homeowners 70 or older (or surviving spouses), which delays payment of property taxes until the property is sold.

Inheritance and Estate Taxes: None

Income Tax Range: No state income tax.

Social Security: Benefits are not taxed. 

IRAs, 401(k)s, DC plans, private pensions, public pensions: Retirement income is not taxed.

Median Property Taxes: $1,206 on median home value of $201,000.

The state has several property tax relief programs. For those who meet the eligibility rules, the tax relief is up to half of the median residential property tax or half of the property tax bill, whichever is less. The residency requirement is five years (physically occupying the home for at least six months per year) immediately preceding the tax year in which you apply for the refund. 

The state has a Tax Rebate to Elderly and Disabled program that is available to those aged 65 and older who meet certain income requirements. They can receive a refund from the Wyoming Department of Health on property tax, utilities and sales/use tax for up to $800 (single filers) and $900 (married filers).

Inheritance and Estate Taxes: None.

Income Tax Range: No state income tax.

Social Security: Benefits are not taxed.

IRAs, 401(k)s, DC plans, private pensions, public pensions: Retirement income is not taxed.

Median Property Taxes: $3,048 on median home value of $257,100.

Smaller municipalities favor a sales tax because the smaller incorporated areas lack a tax base large enough to support the property tax.

Homeowners aged 65 and older (or surviving spouses 60 and older) are exempt from municipal taxes on the first $150,000 of assessed value of their property.

Inheritance and Estate Taxes: None.

Income Tax Range: 

Low: 5.35% (on less than $25,890 of taxable income for single filers and on less than $37,850 for joint filers).

High: 9.85% (on more than $160,020 of taxable income for single filers and on more than $266,700 for joint filers). 

Sales Tax: 6.875% state levy.

Median Property Taxes: $2,234 on median home value of $191,500.

Inheritance and Estate Taxes: Exemption of $2.4 million in 2018; $2.7 million in 2019; and $3 million in 2020. But taxable gifts made within three years prior to death are considered part of the estate. Rates range from 5.6 to 16%.

Income Tax Range:

Low: 3% (on up to $20,000 of taxable income for married joint filers and up to $10,000 for those filing individually).

High: 6.99% (on the amount over $1 million for married joint filers and over $500,000 for those filing individually).

Effective Income Tax Rate: 3.1% for an individual, 5% for a married couple filing jointly

Median Property Taxes: $5,443 on median home value of 269,300.

Inheritance and Estate Taxes: Estates valued over $2.6 million (in 2018) are subject to estate tax; $3.6 million in 2019. Rates range from 7.2% to 12%.

Income Tax Range:

Low: 3.1% (on $2,500 or less of taxable income for single filers and $5,000 or less for joint filers).

High: 5.7% (on more than $30,000 of taxable income for single filers and more than $60,000 for joint filers). 

Social Security: Exempt from Kansas income tax for residents earning $75,000 or less.

IRAs, 401(k)s, DC plans, private pensions: Taxable at ordinary income tax rates.

Public Pensions: Military, civil-service, and Kansas state and local government pensions are exempt. Railroad Retirement benefits are exempt. Out-of-state government pensions are fully taxed.

Median Property Taxes: $1,890 on median home value of $135,300.

Income Tax Range:

Low: 3.35% (on up to $38,700 of taxable income for singles and up to $64,600 for joint filers).

High: 8.75% (on taxable income over for $195,450 for singles and up to $237,950 for joint filers).

Social Security: Exempt for single filers making less than $45,000 a year ($60,00 for joint filers). This break phases out as income rises and expires for single filers making more than $55,000 ($70,000 for joint filers).

Exemptions for Other Retirement Income: Railroad Retirement benefits are exempt, but all other retirement income is taxed. Out-of-state government pensions are fully taxed.

IRAs, 401(k)s, DC plans, private pensions, public pensions: Taxable at ordinary income tax rates.

Median Property Taxes: $3,893 on median home value of $218,900.

Inheritance and Estate Taxes: Estate tax imposed on estates exceeding $2.75 million. The rate is a flat 16%. There is no inheritance tax.

Income Tax Range:

Low: 2.46% (on up to $3,150 of taxable income for single filers and $6,290 for married couples filing jointly).

High: 6.84% (on taxable income over $30,420 for single filers and $60,480 for married couples filing jointly).

Social Security: Exempt if a taxpayer’s federal adjusted gross income is less than or equal to $58,000 for married couples filing jointly, or $43,000 for all other filers.

Exemptions for Other Retirement Income: Railroad Retirement benefits are tax-exempt. No special breaks for nonmilitary retirement income. All government pensions, including those from out-of-state, are taxable to Nebraska residents. Military retirees may make a one-time election within two calendar years after the date of their retirement from the military. A military retiree can choose to exclude 40% of their military retirement benefit income for seven consecutive taxable years or can exclude 15% of military retirement benefit income for all taxable years beginning with the year the retiree turns 67.

IRAs, 401(k)s, DC plans, private pensions: Taxable at ordinary income tax rates.

Public Pensions: No special breaks for nonmilitary retirement income. All government pensions, including those from out-of-state, are taxable to Nebraska residents. Military retirees may make a one-time election within two calendar years after the date of his or her retirement from the military. A military retiree can choose to exclude 40% of his or her military retirement benefit income for seven consecutive taxable years or can exclude 15% of military retirement benefit income for all taxable years beginning with the year the retiree turns 67 

Median Property Taxes: $2,474 on median home value of $133,800.

Inheritance and Estate Taxes: Inheritance tax, administered by counties, can range from 1% to 18%; assets passing to a spouse or charity are exempt from inheritance taxes.

Income Tax Range:

Low: 1.7% (on up to $5,500 of taxable income for single filers and $8,000 for joint filers).

High: 4.9% (on taxable income over $16,000 for single filers and over $24,000 for married couples filing jointly). 

Active-duty pay for service members is exempt.

Social Security: Benefits are taxed, but income can be included as part of an overall retirement income exemption of up to $8,000 per person, subject to income restrictions.

Exemptions for Other Retirement Income: A retirement income exemption of up to $8,000 applies for people aged 65 and older.

IRAs, 401(k)s, DC plans, private pensions, public pensions: Qualify for retirement income exemption. 

Median Property Taxes: $1,232 on median home value of $161,600.

Inheritance and Estate Taxes: None.

Income Tax Range: Flat tax of 4.95%.

Social Security: Benefits are taxed, but may qualify for the retirement income tax credit described below.

Exemptions for Other Retirement Income: Residents aged 65 and older may be able to claim a retirement income tax credit of up to $450 per person ($900 per married couple), subject to income eligibility limits. Taxpayers younger than 65 can claim a nonrefundable tax credit of up to 6% of eligible retirement income or $288, whichever is less. The credit is phased out at 2.5 cents per dollar of modified AGI over $16,000 for married individuals filing separately, $25,000 for singles and $32,000 for married people filing jointly. 

IRAs, private pensions, public pensions: Qualify for the retirement income tax credit.

401(k)s and Other DC Plans: Does not qualify for the retirement income tax credit.

Median Property Taxes: $1,480 on median home value of $223,200.

Inheritance and Estate Taxes: None.

Income Tax Range:

Low: 2% (on less than $1,000 of taxable income).

High: 5.75% (on more than $250,000 of taxable income for single filers; more than $300,000 for joint filers).

Social Security: Not taxed.

Exemptions for Other Retirement Income: Railroad Retirement income is not taxed. If you are aged 65 or older or totally disabled (or your spouse is totally disabled), you may qualify for Maryland’s maximum pension exclusion, which is $29,000, under certain conditions. Distributions from 401(k), 403(b) and 457 plans can qualify for the pension exclusion. Foreign (out-of-country) government pensions do not qualify for the exemption. If you are a retired member of the military and at least 65 years old by December 31, you may be able to subtract up to $10,000 of your military pension from your federal adjusted gross income. If you or your spouse is 65 or over or blind, you are entitled to an extra $1,000 personal exemption, in addition to the regular personal exemption that you may be entitled to.

IRAs: Distributions do not qualify for the pension exclusion. 

401(k)s, DC plans, private pensions, public pensions: Qualifies for the pension exclusion of up to $29,000. Foreign (out-of-country) government pensions do not qualify for the exemption.

Median Property Taxes: $3,191 on median home value of $290,400.

The Homeowners’ Property Tax Credit Program allows credits against a homeowner’s property tax bill if the property taxes exceed a fixed percentage of the person’s gross income.

Inheritance and Estate Taxes: Estate tax is imposed on estates exceeding $4 million. The Free State’s estate tax exemption will rise to $5 million in 2019 but won’t be indexed to inflation going forward. While Maryland has an inheritance tax (with a flat 10% rate), the list of heirs exempt from paying it is long.

Income Tax Range: A flat rate of 3.23%, but counties levy their own income taxes, at rates as high as 3.38% (Pulaski County). The average is 1.56%, according to the Tax Foundation. 

Social Security: Benefits are not taxed.

Exemptions for Other Retirement Income: Railroad retirement benefits are exempt. Taxpayers over aged 65 get to claim an additional personal exemption of $1,000. Taxpayers 60 and older may exclude as much as $5,000 from military pensions. Taxpayers aged 62 and older may deduct from their adjusted gross income up to $16,000 for 2017 from a federal civil service annuity (minus Social Security and Railroad retirement benefits received). Out-of-state pensions are fully taxed. 

IRAs, 401(k)s, DC plans, private pensions: Taxable at ordinary income tax rates. 

Public Pensions: Taxpayers 60 and older may exclude as much as $5,000 from military pensions. Taxpayers aged 62 and older may deduct from their adjusted gross income up to $16,000 for 2017 from a federal civil service annuity (the exemption is minus Social Security and Railroad retirement benefits received). Out-of-state pensions are fully taxed.

Median Property Taxes: $1,100 on median home value of $126,500.

Inheritance and Estate Taxes: None.

Income Tax Range:

Low: 4.0% (on up to $11,450 of taxable income for singles or up to $15,270 for married couples).

High: 7.65% (on taxable income over $252,150 for singles or over $336,200 for married couples).

Social Security: Benefits are not taxed. 

Exemptions for Other Retirement Income: Generally, the same amount of your pension and annuity income that is taxable for federal tax purposes is taxable by Wisconsin. As with Social Security benefits, Railroad Retirement benefits are not taxed. Certain Wisconsin state and local government retirees (those accounts that were in the system before 1964) qualify for a tax exemption. All retirement payments from the U.S. military employee retirement system, the Coast Guard, the commissioned corps of the National Oceanic and Atmospheric Administration, and the Public Health Service are exempt.

Retired people whose income is less than $10,000 ($19,000 if married filing a joint return) are also eligible for a “working families tax credit.” This credit reduces or eliminates the Wisconsin income tax for people, including retirees, who are full-year residents of Wisconsin. You don’t have to be employed or have more than one person in your household to claim this credit.

Retirees 65 and older can subtract $5,000 of qualified retirement income, including IRA distributions, from their Wisconsin taxable income—subject to income restrictions (federal AGI must be less than $15,000 for single filers, $30,000 for married filers even if filing separately). Those aged 65 or older at year-end are allowed an additional personal exemption of $700 and a deduction of $250.

IRAs, 401(k)s, DC plans, private pensions, public pensions: Qualifies for exemptions.

Median Property Taxes: $3,212 on median home value of $164,700. 

The state has several property tax credits, including the homestead credit program, a credit against Wisconsin income tax liability, the Lottery and Gaming Credit, the First Dollar Credit, the School Levy Tax Credit and Veterans and Surviving Spouses Property Tax Credit.

Inheritance and Estate Taxes: None.